On the Bond battlefield, MBS are one of the few left standing, albeit wounded.

Treasuries continue downward whereas MBS have recaptured a tick or two. The market just opened and we wouldn't be surprised to see some "out of the gate" buying exceed futures, though some exuberance may be mitigated by yesterday's already large gain.

If we can fight back to 100-18 today or Monday, we will have avoided the dreaded technical "confirmation" (where we drop below a certain price level and hold it into the close of the next session).

Stay tuned...